This week we are bringing you news about transportation and infrastructure funding in Indiana, California, and South Carolina, next steps for New York's millionaire's tax, moves toward comprehensive tax expenditure review in Ohio, continuation of the income tax reciprocity agreement between New Jersey and Pennsylvania, and efforts for tax change in Nebraska and Arkansas.

-- Meg Wiehe, ITEP State Policy Director, @megwiehe

Lawmakers in Indiana have identified transportation funding as a top priority for the 2017 legislative session. While there is not yet consensus on the sources for this funding, new taxes are expected to be in the mix. Lawmakers have expressed support for indexing the gasoline tax to inflation, reallocating existing state resources, and imposing new user fees.

In South Carolina, where a gas tax update failed earlier this year, support for raising the tax next year to fund needed infrastructure improvements remains strong.

California lawmakers ended a special session on transportation funding last week without a vote on a resolution. The session has dragged out since June 2015, leaving many frustrated with lawmakers.

Expect New York's millionaire's tax to be a major topic of discussion come January as lawmakers head back into session. With lower than expected tax collections and a $3.5 billion budget shortfall, expiration of the tax would worsen the state's budget woes and make low- and middle-income New Yorkers pay more.

Ohio lawmakers have put forth a bill that would formalize a tax expenditure review process. It would task a bipartisan review committee with the review of the state's $8 billion in tax breaks once every eight years.

Kentucky Center for Economic Policy's executive director, Jason Bailey, makes the case for a tax plan that will be fair for all Kentuckians. He argues against elimination of the inheritance tax, shifts away from the state personal income tax, and corporate tax cuts in the name of economic development.

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